BHP Group Ltd. Chief Executive Officer Mike Henry has warned too much government intervention in global critical minerals supply chains could undermine efforts to fight climate change.

The boss of the world’s biggest mining company said it was “understandable” that governments were scrambling to secure domestic supply of the metals needed in renewable energy and electric vehicles, but warned against an excessively domestic focus and over-reliance on the “sugar hit” of government subsidies.

“Governments striving to secure their own critical mineral supplies must ensure they don’t undermine the outcome the world needs to achieve – where in fact a combination of pragmatic international cooperation and competition can jointly accelerate the energy transition,” Henry said a conference in Brisbane on Tuesday.